The recent corrective pullback of Bitcoin after hitting new highs may signal a possible market pivot. Whale activity and the flow of dormant coins demonstrate dynamics that could impact prices in the upcoming weeks.
Dormant Coins Flow and Whale Activity
According to CryptoQuant, Coin Days Destroyed (CDD) surged to 28 million this week, indicating that older Bitcoin previously held inactive is being transferred again. This behavior is linked to large holders typically reallocating their assets around cycle midpoints or local tops. Additionally, Net Realized Profit and Loss (NRPL) spiked above $4 billion, the highest since early Q2. Such trends reflect significant profit-taking by whales while Bitcoin's price hovered around $117,000-$120,000.
Key Support and Resistance Levels
Bitcoin pulled back after hitting $123,000, a level aligning with the +1 standard deviation of the Short-Term Holder Realized Price. Resistance now stands at $124,000 and $136,000, while support is emerging at $113,000. Furthermore, $111,000 marks the average cost basis for new entrants, creating a psychological floor for further corrections. The critical level remains at $101,000, historically signaling a medium-term bullish structure.
Conclusion
Currently, whale activity, profit-locking, and the return of dormant supply to the market indicate a potential hidden inflection point amidst stable Bitcoin price action. However, whether this leads to further distribution or an extended rally will depend on follow-through in the coming weeks.
The present conditions in the Bitcoin market are attracting analysts' interest, and future changes in whale activity could significantly influence price direction in the near future.
